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m-Commerce

e-Commerce Becomes Wireless

It is predicted that the impact of mobile commerce (m-Commerce) on the supply chain will be similar to the impact that we have seen over the past five years with the emergence of the World Wide Web and internet trading. As consumers become more confident with the technology, transactions through this new channel to market will increase. Companies that develop wireless internet applications to exploit this new channel to market must look deeper inside their own businesses and plan further improvements to their supply chain to cope with the additional volume and velocity required for customer orders.

m-Commerce

Some companies have more complex order fulfillment operations with the introduction of outsourced third party logistics. Changes to these integrated systems to allow the exchange of real-time inventory data and processes to achieve enhanced customer service levels will be a challenge. There is no doubt that as the m-Commerce channel evolves, our supply chains will need to evolve to become even more agile and provide a new level of performance to exceed the expectations of our customers.

At the end of this year mobile phone networks are due to be upgraded to a new radio frequency service known as general packet radio service (GPRS). This will increase the mobile internet speed to around 128K which is comparable to many ISDN connections today. These devices will effectively be permanently on-line because GPRS uses "packet" technology, which means that the user only pays for the data that is transmitted. New pricing structures will be offered by the air time companies that will make using this technology more affordable.

This advance in communication technology will encourage the development of business to business (B2B) and business to commerce (B2C) wireless internet applications. How will your supply chain cope with the additional demand?

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Page last updated: 13 March 2008
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